Mobile Broadband Central to Future Operator Embedded Mobile Strategy
By Gsma, PRNEMonday, November 15, 2010
New report outlines key decisions operators must make now to realise full potential of embedded mobile technology
HONG KONG, November 17, 2010 - The GSMA today unveiled research that reveals 3G embedded modules have a
lower total cost of ownership (TCO) than modules based on 2G technology. The
report, conducted by Analysys Mason, specifically compels operators to deploy
3G embedded technology so that they can reap the benefits of Mobile
Broadband, such as higher data throughput, enhanced capacity and richer
mobile services. The report, commissioned by the GSMA, is the result of 23
in-depth interviews with key players in the embedded mobile industry such as
AT&T, Deutsche Telekom, Qualcomm, Telenor Connexion and Vodafone. It reveals
that 3G delivers lower on-going network costs than 2G, while also offsetting
potentially high 2G replacement costs.
"Embedded mobile technology is set to enrich the lives of billions of
consumers over the next few years, presenting an enormous opportunity to
operators. Mobile can enable a wealth of services including vehicle accident
recovery applications, remote health monitoring, smart utility meters and
in-car entertainment systems," said Michael O'Hara, chief marketing officer,
GSMA. "Through Mobile Broadband, operators will be able to deliver embedded
services cost-effectively, allowing them to fully capitalise on the
opportunity at hand. This report underscores that deploying 3G modules will
give operators the flexibility to leverage Mobile Broadband enabled
technologies now and in the future."
"Module costs are just one part of the equation when bringing the next
range of connected devices and services to market. Other factors, including
unique requirements by vertical segments, certification process,
provisioning, and support also share in the costs for a complete embedded
solution," said Glenn Lurie, president, emerging devices, resale and
partnerships, AT&T. "The good news is that as 3G multi-mode modules reach
economies of scale, they are closing the cost gap with 2G modules and will
help further reduce the total cost of ownership."
Embedded mobile technology is being deployed across a range of key
vertical industries including healthcare, automotive, utilities and consumer
electronics. The value that these embedded services and devices deliver will
be vastly enhanced through the superior data processing capabilities and
bandwidth offered by 3G Mobile Broadband mobile network infrastructure.
While approximately 90% of wireless modules being deployed today use 2G
technology, this research demonstrates the benefits to operators of replacing
2G modules with 3G technology. These include the ability to maximise
flexibility when it comes to longer-term network strategy; minimise the costs
associated with replacing legacy 2G embedded devices; and ensuring they are
better equipped to meet future embedded mobile demand. When taking into
consideration enforced 2G module replacement costs, the report concludes that
the TCO for 3G modules is lower than 2G for almost all applications in almost
all scenarios.
Any decisions taken by mobile operators on the deployment of embedded
mobile modules could also affect how they use their spectrum. Should
operators delay the decision to deploy 3G modules, choose to decommission
their 2G networks and re-farm their spectrum, the long life cycles
(potentially up to 20 years) of new embedded devices such as smart meters
could have important implications for the future. If the majority of embedded
mobile modules sold continue to be 2G, and if an operator chooses to
decommission its 2G network, this could result in high costs to replace
legacy equipment. For example, the report found that the typical replacement
cost facing an Indian operator with 10 million subscribers in 2020 could be
as high as US$400 million.
"Leveraging the full capabilities of Mobile Broadband is crucial in
fulfilling the true potential of embedded mobile technology," concluded
O'Hara. "Today's report clearly demonstrates the significant value to mobile
operators of deploying 3G modules as soon as possible to reduce network
costs, maximise existing spectrum and enhance the quality and variety of
embedded services they offer to their customers."
About the GSMA
The GSMA represents the interests of the worldwide mobile communications
industry. Spanning 219 countries, the GSMA unites nearly 800 of the world's
mobile operators, as well as more than 200 companies in the broader mobile
ecosystem, including handset makers, software companies, equipment providers,
Internet companies, and media and entertainment organisations. The GSMA is
focused on innovating, incubating and creating new opportunities for its
membership, all with the end goal of driving the growth of the mobile
communications industry.
For more information, please visit Mobile World Live, the new online
portal for the mobile communications industry, at
www.mobileworldlive.com or the GSMA corporate website at
www.gsmworld.com.
Brian Paterson, +852-9755-3310, mac at ebacomms.com, or Tracy Cheung, +852-9366-7761, mac at ebacomms.com, or Daniel Lowther, +44-7747-636-687, press at gsm.org
Tags: Asia, GSMA, Hong Kong, November 17, Western Europe